Abacus Daily Debt News

Pay off debts, consumers urged

Consumers should be looking to pay off their debts rather than put their money into a savings account, one financial expert has stated.

According to head of personal finance at Fool.co.uk David Kuo, the current financial situation has made savings rates so low that it makes more financial sense to pay off high-interest debts.

"What people need to do … is to try and pay down as much of your debt as possible," he remarked, noting that "most people" are likely to owe money as a result of Christmas spending, mortgages or personal loans.

Those who currently owe money to lenders but are hoping to become debt free in the future may wish to follow Mr Kuo’s advice and look to increase their mortgage, loan or credit card repayments.

The advice follows that of Carl Kroger from the Relax Group, who urged Britons who are struggling financially to keep written records of their outgoings so they are aware of how much is being spend on bills and mortgage repayments each month.

By Tom Musk